Moody’s Ratings upgraded the Insurance Financial Strength Rating (IFSR) of Italian insurance company Generali Group and its core European subsidiaries to A1 from A2. The rating outlook remains stable.
The rating, which is four notches above Italy’s sovereign rating (Baa2 Stable), reflects its very strong business and financial profile, which significantly reduces its sensitivity to broader financial market and macroeconomic conditions.
The rating action also applies to Generali’s core European subsidiaries in Italy, France and Germany, all of which have had their IFSR upgraded to A1 from the previous A2.
Moody’s said a key driver behind the upgrade is Generali’s ability to withstand hypothetical domestic sovereign stress or default scenarios.
There are a number of factors that enhance this resilience, including Generali’s risk management, which keeps its exposure to Italian sovereign assets below 25% of general account assets.
Moody’s said: “Generali’s ratings are partially constrained by Italy’s sovereign rating, which is driven by the group’s operating income and asset exposure in Italy, as well as its holding company’s Italian domicile and debt issuance. These factors are significantly reflected in our assessment of Generali’s asset quality, capital and financial flexibility.”
In addition, the insurer’s strong diversification outside of Italy helps cushion the group against the impact of the economic downturn.
Moody’s said: “We believe that Generali Group’s credit profile is significantly stronger than that of Italy, driven by the group’s very strong business profile, benefiting from its leading position in selected European markets, diversified business lines and relatively low product risk. The rating also reflects Generali Group’s strong financial profile.”
Generali’s capitalization has remained largely stable in recent years, with a Solvency II ratio as high as 219% by the end of 2025.
Generali also continues to report strong earnings, with a return on capital of about 7% in 2025 (Moody’s estimate).
The stable outlook reflects the stable outlook of the Italian government and reflects the expectation that Generali will maintain its business and financial position as strong.
